PATHWAY TO NET ZERO 2050: A CONCEPTUAL EVIDENCE FOR SMES TRANSITIONING TO SUSTAINABLE DEVELOPMENT

This paper offers a conceptual understanding of the context under which SMEs attempt to shift towards achieving Net Zero emissions by the year 2050. The study examines the progression of sustainable development goals and the significant contribution of SMEs in attaining these objectives by including theoretical and conceptual understandings of SMEs. The Brundtland Report and the Rio Earth Summit originated the sustainable development agenda. These events paved the way for establishing the Sustainable Development Goals (SDGs) 2015. Attaining Net Zero 2050, a condition where the amount of greenhouse gas emissions is offset by removing them from the atmosphere, is crucial for worldwide efforts to address climate change by Sustainable Development Goal 13. SMEs have distinct obstacles and prospects throughout this transformation, encompassing limitations in financial resources, technological preparedness, and compliance requirements. However, they also have the potential to gain advantages such as enhanced efficiency, innovation, and market competitiveness. The paper employs the Technology-Organization-Environment (TOE) framework and the Resource-Based View (RBV) paradigm to examine SMEs' successful implementation of sustainable practices. In addition, this analysis explores the frequently disregarded impact of digital transformation on improving the sustainability efforts of SMEs. The investigation asserts that a well-coordinated strategy is essential for SMEs to effectively achieve the goal of Net Zero 2050 and contribute to global sustainability objectives. This strategy should involve government incentives, industry support, and internal commitment within the organizations. By adopting this approach, SMEs can ensure long-term economic and environmental resilience.